Many devastating lawsuits against professional firms are brought on the basis of a mistake by an employee. Errors such as accidentally leaving out important information from a form, failing to enter an important calendar date, misplacing a document or making an inaccurate calculation can all cause serious damage to the client, ranging from monetary loss to personal injury. Even if your firm has excellent employee training and anti-error protocols, there is no way to ensure that no mistake is ever made.
Other Policies Will Not Protect You
Some professionals, while acknowledging the seriousness of the potential consequences of a mistake, believe that resulting claims will be covered by their firm’s liability insurance. However, most general liability policies exclude professional services. Your own professional liability insurance may also not necessarily cover negligent acts or omissions by your non-professional subordinates, although your firm can still be on the hook when it comes to resulting damages.
Look for Individualized Coverage
The most effective way to protect your firm from loss due to claims based on errors and omissions is to select a dedicated Errors & Omissions policy to cover this particular scenario. Consult an insurance provider offering policies for Errors and Omissions in New Jersey to determine which is best for you. E&O policies can differ in scope and coverage, so it is important to chose the one that addresses your firm’s risks.
Most businesses would do well to obtain a thorough insurance policy to protect themselves when unforeseen circumstances present themselves. Law firms face unique risks, and therefore, it would be wise of every firm to obtain legal liability insurance in Austin. A good policy will cover a variety of claims. However, not everything will be covered.
Naturally, if a law firm is being sued for conducting criminal activity, then that firm would be unable to use their policy to cover legal expenses. This also includes fraudulent or otherwise dishonest activities.
Two Insured Employees at the Same Company
Your policy will cover everyone who works at your law firm from attorneys to office workers. If one employee sues another employee for whatever reason, your insurance policy would not cover both of them.
Additional items that are generally excluded from a legal liability insurance policy include:
- Property damage caused by an employee of the firm
- Bodily injury caused by an employee of the firm
- Claims the firm should have foreseen when the policy was first obtained
Your insurance agent will go over your law firm’s policy in fine detail when you first get it so that you understand every last detail. While there are certainly plenty of exclusions, there are plenty of items that are covered, so acquiring legal liability insurance in Austin is definitely an investment worth pursuing.
If you are an attorney and are looking for professional liability lawyers, it is important to only do business with a company that knows how to cover every base. Because there are so many things to take into consideration, you need a team of specialists with plenty of experience on your side.
An Increase in Large Claims
Although research has suggested the amount of claims that have been filed against lawyers in 2012 was not very different from 2011, there has been a surge in the amount of large claims being filed. Most insurers that were included in the study noted a higher prevalence of claims that have a reserve of over $500,000. As a result, it is a good idea to have hard-working professional liability lawyers on your side.
Protect Yourself Properly
There are a number of reasons why attorneys find themselves in these situations. It could be from lack of communication, or maybe by their inability to satisfy a certain deadline. Regardless of the cause, when attorneys face a lawsuit, it is crucial for them to have a policy that will protect them. While many lawyers understand why it is so essential to have a quality policy, some push it off because they can’t find the time. Don’t wait any longer to reach out to professional liability lawyers and start enjoying the peace of mind that a thorough policy provides.